Dividends and return of capital
The board proposes, subject to shareholders' approval, to pay a final dividend of 8.0p per share (2015: 8.0p per share), on 24 November 2016, to those shareholders on the register on 21 October 2016, giving a total dividend for the year of 12.0p per share (2015: 12.0p per share). The dividend is covered 3.6 times (2015: 3.1 times).
In view of the high level of capital expenditure and the potential for advantageous investments, the board has decided to maintain the dividend at its current level for the time being.
During the year, 5,694,546 shares (representing 4.8% of the issued share capital) were purchased by the company for cancellation, at a total cost of £39.4m, including stamp duty, representing an average cost per share of 692p.
Over the last 10 years, my shareholding has increased from 21.2% to 29.5%, as a result of the company's share 'buybacks'. The company is considering seeking a rule 9 'whitewash', under the UK City Code on Takeovers and Mergers, allowing further buybacks.
